PALO ALTO, Calif.--(BUSINESS WIRE)--Southwall Technologies Inc. (OTCBB:SWTX - News) announced third quarter 2009 revenue of $8.6 million, up 3% from second quarter 2009 revenues of $8.3 million and down 19% from third quarter 2008 revenues of $10.6 million. The year over year decrease was primarily due to a decline in sales of automotive and window film products primarily driven by lower market demand caused by the global economic downturn.
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Third quarter 2009 net income was $0.7 million, or $0.02 per diluted share, as compared to net income of $1.5 million, or $0.04 per diluted share in second quarter 2009, and $1.0 million, or $0.03 per diluted share in third quarter 2008. Net income in the second quarter 2009 included $0.5 million of other income relating to the receipt of the final milestone payment under the Technology Transfer and Services agreement with Sunfilm.
Third quarter 2009 gross profit was $3.7 million, or 43% of net revenues, as compared to $3.7 million, or 44% of net revenues, in second quarter 2009 and $4.2 million, or 40% of net revenues, in third quarter 2008. The Company posted income from operations of $1.0 million in the third quarter 2009, as compared to $0.9 million in the second quarter 2009 and $1.4 million in the third quarter 2008.
In addition, the Company reached an amicable settlement with Pilkington Automotive GmbH on a patent allowed by the European Patent Office. The agreement consists of an up-front license payment with no future royalties or other licensing restrictions for Southwall or its customers.
“Despite the year over year sales decline, we are generating cash and continue to invest in longer term growth opportunities,” said Dennis Capovilla, Southwall’s President and CEO. “As the economy begins to stabilize, we see strong potential for growth across all markets relating to energy efficiency, and we remain focused on realizing longer term growth.”
About Southwall Technologies Inc.
Southwall Technologies Inc. is recognized as an innovator in the development and manufacture of high performance, energy-saving films and glass products that dramatically improve the energy efficiency of architectural and automotive glass. Southwall is an ISO 9001:2000-certified manufacturer with customers in over 25 countries around the world, including Audi, BMW, Guardian, Peugeot-Citroen, Pilkington, Renault, Saint-Gobain Sekurit, and Volvo.
This press release may contain forward-looking statements, including, without limitation, statements regarding the Company's expectations, beliefs, intentions, or strategies regarding the future. All forward-looking statements in this press release are based on information available to the Company on the date hereof, and the Company assumes no obligation to update any such forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those presented. These risks include the possibility that the Company’s expected future results will be materially worse than estimated, that the Company may not continue to be profitable in future quarters or may not be able to achieve future long-term growth, that there will be a decline in one or more portions of our business in 2009 or thereafter, that the Company will not be successful in improving operating performance or controlling costs, that the Company will suffer a decline in manufacturing or financial effectiveness, that the Company’s new product development will not be successful, that there may be decreasing demand in certain markets and that the Company will not be able to secure additional financing if required, as well as risks associated with any failure to meet potential covenant requirements under future credit facilities. Further risks are detailed in the Company's filings with the Securities and Exchange Commission, including those set forth in the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2008, filed on March 26, 2009. |
